Two friends Jack and Jose began operations of their tool and die shop (J & J Shop, Inc.) on January 1, 2019. The annual reporting period ends December 31. The trial balance on January 1, 2020, follows: Credit Debit 6,000 5,000 13,000 78,000 8,000 7,000 Account # 100 110 120 130 140 141 150 210 220 230 240 250 300 310 320 400 Account Titles Cash Accounts receivable Supplies Land Equipment Accumulated depreciation - Equipment Other assets (not detailed to simplify) Accounts payable Wages payable Interest payable Income taxes payable Long-term notes payable Common stock (8,000 shares, $0.50 par value) Additional paid-in capital Retained earnings Service revenue Depreciation expense Supplies expense Wages expense Interest expense Income tax expense Remaining expenses (not detailed to simplify) Totals 4,000 80,000 17,000 540 520 530 550 560 570 109,000 109,000 Transactions during January 2020 follow: Jan 1: Borrowed $15,000 cash on a five-year, 8 percent note payable, dated January 1, 2020. Jan 4: Purchased land for a future building site; paid cash, $13,000. Jan 8: Earned $215,000 in revenues, including $52,000 on credit and the rest in cash. Jan 10: Sold 4,000 additional shares of capital stock for cash at $1 market value per share on January 1, 2020. Jan 12: Incurred $114,000 in Remaining Expenses, including $20,000 on credit and the rest paid in cash. Jan 13: Collected accounts receivable, $34,000. Jan 14: Purchased other assets, $15,000 cash. Jan 15: Purchased supplies on account for future use, $27,000. Jan 16: Paid accounts payable, $26,000. Jan 18: Signed a three-year $33,000 service contract to start January 18, 2021. Jan 30: Declared and paid cash dividends, $25,000. 1. Prepare and record journal entries for the above transactions in the General Journal (GJ1) below. All journal entries must have an explanation. Date Account and Explanation Post Ref. Debit Credit Jan 1 100 15,000 Cash Long-Term Notes Payable (Borrowed cash and issued a note payable) 250 15,000 Data for adjusting entries: Jan 31: Supplies counted on January 31, 2020, $18,000. Jan 31: Depreciation for January 2020 on the equipment, $10,000. Jan 31: Interest accrued on notes payable (to be computed) for January 2020. Jan 31: Wages earned by employees since the December 24 payroll but not yet paid, $16,000. Jan 31: Income tax expense, $11,000, payable in 2021. 2. Prepare and record journal entries for the above transactions in the General Journal (GJ2) below. GJ2 Credit Account and Explanation Post Ref. Debit Date Jan 31 520 22,000 Supplies Expense Supplies (Adjusting entry for supplies used) 120 22,000 3. Post the journal entries for the January transactions and the January 31 adjusting entries to the respective General Ledger Accounts (T-Accounts) Account #100 - Cash Ref. Debit Credit Balance Date Description or Explanation Jan 1 Beginning Balance 2 Borrowed cash and issued a note payable 6,000 15,000 6,000 21,000 GJ1 Account #110 Accounts Receivable Ref. Debit Credit Balance Date Description or Explanation Jan Beginning Balance Account #120 Supplies Ref. Debit Credit Balance Date Description or Explanation Jan Beginning Balance Account #130 - Land Ref. Debit Credit Balance Date Description or Explanation Jan Beginning Balance Account #140 - Equipment Ref. Debit Credit Balance Date Description or Explanation Jan Beginning Balance Account #141 Accumulated depreciation - Equipment Ref. Debit Credit Balance Date Description or Explanation Jan Beginning Balance Account #130 - Land Ref. Debit Credit Balance Date Description or Explanation Jan Beginning Balance Account #140 - Equipment Ref. Debit Credit Balance Date Description or Explanation Jan Beginning Balance Account #141 Accumulated depreciation - Equipment Ref. Debit Credit Balance Date Description or Explanation Jan Beginning Balance Account #150 Other assets Ref. Debit Credit Balance Date Description or Explanation Jan Beginning Balance Account #210 Accounts Payable Ref. Debit Credit Balance Date Description or Explanation Jan Beginning Balance Account #220 - Wages Payable Ref. Debit Credit Balance Date Description or Explanation Jan Beginning Balance Account #230 - Interest Payable Date Ref. Debit Credit Balance Description or Explanation Jan Beginning Balance Account #240 Income Taxes Payable Ref. Debit Credit Balance Date Description or Explanation Jan Beginning Balance Account #250 - Long-Term Notes Payable Ref. Debit Credit Balance Date Description or Explanation Jan Beginning Balance Account #300 - Common Stock Ref. Debit Credit Balance Date Description or Explanation Jan Beginning Balance Account #310 - Additional Paid In Capital Ref. Debit Credit Balance Date Description or Explanation Jan Beginning Balance Account #320 - Retained Earnings Ref. Debit Credit Balance Date Description or Explanation Jan Beginning Balance Account #400-Service Revenue Ref. Debit Credit Balance Date Description or Explanation Jan Beginning Balance Account #540 - Depreciation Expense Ref. Debit Credit Balance Date Description or Explanation Jan Beginning Balance Account #520 - Supplies Expense Ref. Debit Credit Balance Date Description or Explanation Jan Beginning Balance Account #550 - Interest Expense Ref. Debit Credit Balance Date Description or Explanation Jan Beginning Balance Account #560 - Income Tax Expense Date Ref. Debit Credit Balance Description or Explanation Jan Beginning Balance Account #570 - Remaining Expense Ref. Debit Credit Balance Date Description or Explanation Jan Beginning Balance 4. Prepare an Unadjusted Trial Balance as well as the Adjusted Trial Balance below. Trial Balance Worksheet January 2020 Unadjusted Trial Balance Account Name Adjusting Entries Adjusted Trial Balance Debit Credit Debit Credit Debit Credit Cash 6. Prepare the closing entry on December 31, 2020. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. After recording this closing entry, post the entry to the General Ledger in Part (3).) Date Account and Explanation Debit Credit Jan 31 6. Prepare the Post-Closing Trial Balance as well as the Adjusted Trial Balance below. Post-closing Trial Balance Worksheet January 2020 Post-Closing Trial Balance Account Name Adjusted Trial Balance Debit Credit Closing Entries Debit Credit Debit Credit Cash